U.S. Inflation Hits Two-Year High As Gas Prices Surge

The U.S. inflation surged in March, driven largely by soaring fuel costs linked to the Iran conflict, according to official data. The report said consumer prices rose 0.9% for the month, pushing annual inflation to 3.3%, the highest level in nearly two years.

Gasoline prices jumped 21.2%, marking the sharpest monthly increase since 1967. AAA reported average gas prices at $4.15 per gallon, reflecting continued pressure despite the Trump administration’s two-week ceasefire with Iran.

US inflation surged in March by the most in nearly four years as the war with Iran sent gasoline prices skyrocketing. The consumer price index rose 0.9% from February.

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Rising energy costs are already impacting households, with real wages falling 0.6% as earnings failed to keep pace, according to the Bureau of Labor Statistics. Analysts warned that higher fuel prices could soon affect broader goods and services.

At the same time, core inflation remained moderate at 0.2%, with declines in sectors such as used cars and stable medical costs. The White House highlighted falling prices in items like eggs and dairy, while economists said future Federal Reserve rate cuts remain possible.

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